Corporate Citizenship Impacts Bottom Line
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Slides presented by Gwen Migita of Caesars
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Corporate Citizenship Impacts Bottom Line
- 1. Corporate Citizenship Sustainable Brands Member Meeting March 2014
- 2. CAESARSENTERTAINMENT®|PROPRIETARYANDCONFIDENTIAL Corporate Citizenship encompasses our efforts to be a responsible entertainment company We call our efforts corporate citizenship because: • We are members of the communities we operate in. • As citizens, we are responsible for taking an active role to make the world a better place.
- 4. CAESARSENTERTAINMENT®|PROPRIETARYANDCONFIDENTIAL Corporate Citizenship Hits the Bottom Line Engage Employees Drive Operational Improvements Enhance Attractiveness Increase Brand Value Communication & Perception In public opinion survey, sharing Caesars’ employee benefits, RG programs, local business partnerships, and environmental efforts most improved corporate reputation & guest loyalty. Retention & Productivity: 2013 EOS: 55% aware of CodeGreen & 50% indicated it was highly important to them Utility Savings On track to achieve 20% energy intensity reduction in 2015- utility savings to date equal ~$35 million in annualized savings Guest Preference Guest awareness of employee engagement in CC increases loyalty and satisfaction with Caesars.
- 5. CAESARSENTERTAINMENT®|PROPRIETARYANDCONFIDENTIAL Guests - Responsible Gaming 2014 Baltimore Roll-out Ongoing Program Management 2015 Cherokee Valley River Roll-out Education & Customer Awareness •Signs of problems, how to get assistance •How gambling works, setting limits Responsible Provision of Gambling •Self-Exclusion and self-restriction •Staff training Services & Resource for Guests •Hotlines and web based access •Trained counselors and health providers
- 6. CAESARSENTERTAINMENT®|PROPRIETARYANDCONFIDENTIAL Positive Economic Contribution 2014 Award from Bloomberg and Points of Light Foundation Caesars placed first in consumer discretionary category
- 8. CAESARSENTERTAINMENT®|PROPRIETARYANDCONFIDENTIAL Supporting Local Communities 542 572 643 687 1275 1326 1817 1955 2562 4378 4467 5126 21,180. 5516 6488 7469 8800 9892 11038 11844 12611 15423 20515 21180 33107 0 5000 10000 15000 20000 25000 30000 35000 GULF THISTLEDOWN LAUGHLIN BALTIMORE ( 2 quarters) CLEVELAND LAKE TAHOE COUNCIL BLUFFS RENO NORTH KANSAS CITY SOUTHERN INDIANA WINDSOR TUNICA JOLIET CINCINNATI HAMMOND PHILADELPHIA S. CAL ATLANTIC CITY NEW ORLEANS BOSSIER CITY METROPOLIS AK-CHIN LAS VEGAS REGION CHEROKEE CORPORATE/ ESS 2014 2013 *Reported volunteer hours through HERO Includes individual time and friends and family at HERO events Employee enthusiasm continues through employee HERO volunteer programs 25% increase in total HERO* hours Y-o-Y (2013: 155,352 vs 2014: 194,620)
- 9. CAESARSENTERTAINMENT®|PROPRIETARYANDCONFIDENTIAL 9 Caesars Foundation Giving Since inception, Caesars Foundation has gifted more than $66 million Areas of Focus • Helping older individuals live longer, healthier, more fulfilling lives. • Supporting innovative educational initiatives and promoting a more sustainable world. • Improving the quality of life in operating communities. Major Partners Teach for America/PBS Meals on Wheels Clean the World
- 10. CAESARSENTERTAINMENT®|PROPRIETARYANDCONFIDENTIAL Core Environmental Performance Operational Efficiencies Employees Brand Value CodeGreen program focus 10 Energy Water Waste Carbon
- 11. CAESARSENTERTAINMENT®|PROPRIETARYANDCONFIDENTIAL Our strategy is organized in three pillars 11 Organizational commitment and alignment Core environmental performance Stakeholder communication and engagement CodeGreen Program Pillars of our sustainability strategy • Employees • Owners • Communities • Government officials • NGOs • Energy, water, carbon, waste reduction • Recycling • Green buildings • Metrics • Synergies to drive mission • Best practice adoption • Leverage scale • Coordination with owner programs • Customer loyalty • Cost savings • Revenue growth • Brand value • Community pride • License to operate • Employee satisfaction and retention
- 13. CAESARSENTERTAINMENT®|PROPRIETARYANDCONFIDENTIAL Guest Impact * As of 12/2/2014 scores Chart is based on Agree & Strongly Agree Scores (4+5 ratings on a 5 point scale) 63.8% 64.8% 64.9% 2012 2013 2014* Guests familiar with the CodeGreen Program who say it influences their decision to visit. *
- 14. CAESARSENTERTAINMENT®|PROPRIETARYANDCONFIDENTIAL $75M invested at the corporate level (10 years) and 120 awards/certifications on property and company-wide level (since 2008) First LEED Silver project & Audubon certified golf course Achieves absolute carbon reduction exceeding goal of 10% Exceeds 2015 Waste Diversion and Water Reduction Targets 2011 2012 201320102009 Adopts env sustainability into its Code of Commitment Caesars Foundation begins $500K support to aid Clean the World in opening a LV recycling facility, soap distribution trips First in gaming to join Climate Leaders Receives the silver “Green Supplier Award” from IMEX and Green Meetings Industry Council 14 First reporting, adds CDP water & supply chain in subsequent years 2008 2014 First EPA (Region 2) award for AC Branded strategy launched Certification at 9 properties New Partner Gold Achievement Award Water Hero Award Shifts to guest awareness & CodeGreen @ Home programs Sierra Club Toiyabe Chapter & Virgin Holidays Awards All properties with hotels receives certification First LEED Gold Casino (Baltimore), Core & Shell (LINQ)
Editor's Notes
- Key Concept: Corporate citizenship is inclusive of these concepts you are already familiar with- but it emphasizes our role in the communities we operate in. This represents a shift away from talk about our efforts under a “sustainability” or “CSR” label, because these have more singular connotations. Citizenship is a broader, more inclusive concept which more accurately represents the range of our community interests and impacts. Transition: Corporate Citizenship is way to broadly discuss the programs and achievements we pursue under the Code of Commitment. [IMPORTANT NOTE: CC IS NOT A FUNCTION OF THE COMPANY – BUT OUR VALUES. THERE ARE OWNERS AND LEADERS IN COMPLIANCE, DIVERSITY, HR, MARKETING ETC, WHO EACH SPEAK TO OUR VALUES]
- Key Concept: Our corporate citizenship work reflects the four commitment areas outlined in the Code Commitment Transition: The Code represents our commitment to overall responsible conduct it also has critical bottom-line implications.
- Key Concept: Following through on our Code of Commitment areas is “good” practice as an responsible company. But for everyone in this room, it’s important to understand that participating-in and sharing our Corporate Citizenship makes a significant financial impact on the company. Improved brand reputation means more communities welcome us, more people want to work for us, and more guests want to stay with us relative to our competitors. Transition: Our guest themselves are telling us that Citizenship programs like CodeGreen influence their decision to stay. NOTES – The $35M represents a reduction approximately 17% total utility spend. Energy use is down ~20% on a per-square-foot basis (which accounts for growth). Projects completed include lighting retrofits (LED), guestroom thermostat changes with integrated occupancy sensors, central plant upgrades, low-flow fixture installation, installation of high-efficiency motors, and building system automation control upgrades.
- Roll-out with new properties: As part of license application, prepare and submit property Responsible Gaming Plan for regulator approval. IT development involves RG data codes and integration of enterprise-wide RG system. Training and development of RG Chair and RG Administrator(s), and other staff for compliance of RG Program policy and procedures, RG ID @ Slots, RG collateral, etc. Training involves three RG models include RG Ambassador policies, procedures, and RG application training. Alignment with state specific programs such as state sponsored self-exclusion program and other requirements RG Communications disseminated FOH and BOH and properties audited for corporate and state specific RG compliance Corporate RG function continues ongoing support and guidance to property Program Management: Education and consumer awareness campaigns in communities and in venues Dispelling myths about “beating the odds” Encouraging consumers to set limits Improving awareness of potential signs of problem gambling Providing consumers knowledge of how to access assistance Educating consumers as to how gambling works Responsible provision of gambling Self-exclusion and self-restriction, including unilateral exclusion by gaming venue Staff training to encourage responsible gaming Services and resources 800 hotlines and web-based access to assistance Network of trained counselors and other community health providers
- In late 2014 we produced our annual Corporate Citizenship Report* Of the direct economic value we created in 2013, more than 71% was distributed among our employees and vendors. 17% was paid to cities and communities we serve in the form of taxes. *Figures are from 2013, the last reported year Civic 50 Organizations and prospective employees are increasingly looking at companies to better integrate social values and community impact in operations. Over the past few years, Bloomberg and Points of Light have come together to recognize top U.S. companies for their strategic impact and integration of community engagement in their Civic 50 Awards. Caesars Entertainment was recognized in the Civic 50 as one of the most community minded companies in America – and, first in the consumer discretionary category, with tough competition from companies like Hasbro and The Hershey Company.
- Talking Points: Last year we became one of the only companies in the U.S. to monetize our social contributions. We enlisted a nationally known expert for this work and have since received greater credibility and traction with corporate citizenship. This graphic highlights a white paper written by Bea Boccalandro of Veraworks who consults Fortune 500 companies and teaches Social ROI at Georgetown and Boston Center of Corporate Citizenship In sum, for every $10M in revenue: We give more than twice the estimated average of U.S. corporations based on monetized value of societal contributions: $4.6M vs $2M In giving (mandated and discretionary), Caesars contributes $86,000 to community organizations versus $8,000 for the average U.S. company Our tax contributions are nearly 4x the average U.S. company Our volunteer impact and employee salaries and benefits are nearly 2x over the average U.S. company Our employment is 50% higher than the average U.S. company: We employ 79 workers for every $10M in revenue relative to 53 for the average U.S. company. Note: Figures on this graphic are 2012. Thus CodeGreen figures on awards and accomplishment are dated. “Giving” includes mandated giving through license agreements
- The Year Ahead: Reported HERO hours increased 25% given focus on reporting and increased emphasis of company-wide signature programs such as Breast Cancer Awareness Month/Relay of Life events. Company Employee Volunteer Program (HERO) and Giving policies and overall approach is being reevaluated for higher level impact and updates for 2016 roll-out Programs take into consideration substantial reduction in philanthropy given business environment: Foundation budget is $1.7M in 2015 (down from nearly $3M) and properties at $850K (down 50%) for property charitable and community relations. The company will continue to monetize social impact as figures include giving under licensing agreements and are thus substantially higher than the average US company.
- Talking Points: The Caesars Foundation is a separate 501C3 which is funded by properties and guided by Trustees representing operators and corporate leadership. Over the last decade, the Foundation has gifted over $66 million to charities in communities in which we operate. Strategic giving areas include older individuals, education, environment, and quality of life issues. Some of our major partners include Teach for America, Meals on Wheels, and Clean the World. An exemplary partnership is with Teach for America and PBS in Las Vegas: We developed an innovative Back-to-Work program at various adopted schools. In addition, HERO volunteers will help develop and teach the curriculum for a hospitality industry course for high school seniors, exposing students to the industry including internships and mentoring opportunities. As part of these adoptions, parents of students at both schools have access to the Caesars Back-to-Work program facilitated in partnership with Vegas PBS. The program provided opportunity through online education including English as a second language and GED courses. (Note: Meal on Wheels and Clean the World is covered in the following slide) Background to Teach for America Gift: Since 2011, Caesars Foundation has gifted more than $500,000 to support Teach For America’s efforts to prove that all children will excel when given the opportunity, knowledge and skills to achieve. Previous commitments supported both program development and the sponsorship of 4 Teach For America teachers in the Las Vegas Valley. In 2012, the Foundation adopted Walter V. Long Elementary School for the 2012-13 and 2013-14 school years, and continued with the adoption of Jerome D. Mack Middle School for the 2013-14 and 2014-15 school years. The latest school adoption is Chaparral High School. School adoptions engaged HERO volunteers to help organize parent-teacher organizations (PTOs) that did not exist previously for both the elementary and middle schools. Students at Chaparral will learn about a variety of popular career opportunities in Las Vegas, including hotel operations and catering, through a specially designed curriculum taught by HERO volunteers. The specialized class will be held three days a week, with one day each week featuring a HERO employee volunteer who will interact with students, explaining how he or she worked to earn the current job, and day-to-day details of the job. The class will also include field trips and interactive career experiences at Caesars properties. Prior to interacting with students, HERO volunteers will complete online mentor training through the Foundation’s partnership with Vegas PBS. During the online training, HEROs will learn tools and strategies to make a positive difference in the lives of children, gain insight to develop and reinforce relationship building skills, and learn how to offer students guidance, serving as a positive role model while instilling social skills needed in the workplace.
- At the core of our sustainability program is a focus on improved efficiencies, lower energy and water use, and increased recycling and waste diversion Carbon reduction is a strategic area of focus as carbon is an important global issue and serves as a proxy for many of the environmental impacts we have in our day-to-day operations. Consistent with our code of commitment, our CodeGreen program also places an emphasis on employees, customers and the communities in which we operate. Green building is a core commitment made by our CEO and makes absolute business sense. Like core environmental performance, building green not only has an environmental return on investment, but also a financial return on investment.
- Talking Points: CodeGreen is the name of our environmental sustainability strategy which supports the service profit chain, engages employees, saves us money, and builds goodwill in the communities in which we operate. In 2007 we approached over a dozen experts/companies and asked what a “best in class” environmental sustainability would encompass. They consistently told us that we need to: Develop clear and measureable goals and objectives over a long period of time. Address social and economic issues in additional to “just green” – We have developed community facing programs and one of the most comprehensive sustainability strategies in business. Be supported from the top down and encourage bottom up enthusiasm and interest in the program – We are one of few companies with hands on CEO support for a strategy Get the organization aligned on these goals and objectives. Be authentic in investing in large capital investments to reduce our carbon and Greenhouse Gas Emissions – we have invested $70M in 9 years at just the corporate level and save $26M a year in resources. Engage our stakeholders, develop leadership relationships with regulators, Non-Governmental Organizations and Communities We have impressive outcomes in 6 years of CodeGreen: Nearly 90 awards and certifications on the local, regional, national and international level For example, all hotels - 31 of our properties, are Green Key certified which help us manage operational efficiencies and reduce waste monitoring procedures in our hotel rooms, convention space and food outlets.
- Includes 4 & 5 ratings. Key Concept: 57% of guests indicate they’re familiar with CodeGreen (Agree & Strongly agree), and of those guests, about 65% are positively influenced by the CodeGreen program to visit (Agree & Strongly agree). This makes a huge case for raising that 57% familiarity to 100%. And each one of you are accountable not only for this communication, to ensure that guests know about the program and your colleagues follow-through on it. Transition: Any questions on the concept of Corporate Citizenship and it’s importance to our business?
- Caesars is proud of our CodeGreen sustainability program and the accomplishments we’ve made We recognize sustainability is a journey and that we have a lot of hard work ahead or ourselves However, we are humbled by the independent recognition we have received and the industry “firsts” that we’ve implemented within the sustainability space Achieving sustainable and efficient operations is a journey, not a destination. We understand this at Caesars and are committed to saying the course to improve environmental performance.